It can be surprising how many homeowners are not taking advantage of tax deductions for home improvements they make throughout the year. New studies show more homeowners are remaining in their current homes, because of either financial difficulties, or a high competitive real estate market. Regardless of why homeowners are staying in their current homes longer, it is inevitable to make home improvements. Homeowners all over the county are deciding to remodel their homes, which increases the value of a home. However, many homeowners do not know about a home improvement tax deduction. Before you start getting excited about home improvement tax deductions, you need to know what qualifies as a home improvement deduction.
If a homeowner performs renovations, such as installing an elevator, ramp or raised sinks, they are most likely doing so because of a medical condition. Any improvements you make to your home to accommodate a medical condition will qualify for home improvement deductions. You will need to show the proper documentation in order to qualify for home improvement tax deductions as well. Be sure to keep all your receipts for any home improvement projects that involve making changes to accommodate a medical or physical condition for you or a family member. Home remodeling projects for medical or physical reasons are not the only projects that qualify for home improvement taxes.
You can receive a home improvement tax deduction home remodeling projects related to energy savings. In fact, you can receive rebates from Federal, State and local governments on certain remodeling projects related to increasing energy efficiency. Certain states in America provide a 25 percent home improvement tax deduction for remodeling projects that will increase the energy efficiency of a home. Any time you are dealing with the government, there are requirements and restrictions you must be aware of if you are going to claim any home improvement projects on your taxes.
One response to “Did You Know You can Deduct Home Improvements on Your Taxes?”
We only have a single story house. Installing an elevator is out of the question for us. I bet homeowners living in two story houses can install an elevator even without a medical condition.